Kramer explains how to discover “awesome moments” like Friday's session

CNBC Jim Cramer Investors reviewed Friday's market action, describing the session as a “wonderful moment,” as stocks opened weak, but averages rose at the close. While he said this particular moment has come and gone, he listed ways investors can recognize it in the future, saying these conditions could yield significant gains.

“We used to call days like today 'the great moments.' “Those are the moments where the Bears exaggerate their advantage because they don't know when to quit,” he said. “We had one this morning.”

After a tough week on Wall Street – Dow Jones Industrial Average The index fell by 1,100 points in one session and recorded its longest losing streak in about 50 years. recoil Friday. The 30-stock Dow rose 1.18% to close the week, while the 30-stock Dow Jones rose 1.18% to close the week Standard & Poor's 500 It rose by 1.09% and Nasdaq Composite He added 1.03%.

These “wow moments” happen when the market is oversold, according to Cramer. To discern market conditions, he said he uses MarketEdge's S&P Oscillator, which shows when there is a lot of buying or selling. Cramer added that these “wonderful moments” appear when pessimistic investors show “overconfidence,” saying that Friday saw major stocks rise. Palantir, apple and Nvidia Backtracking at the beginning of the session for no apparent reason.

Investors should also monitor positive data about the economy when the market is oversold, Cramer continued. He noted that some of the upward movement on Friday was due to cooler numbers from the interest rate index Personal consumption expenditures price indexA Main scale to the Federal Reserve. Finally, he said, news that is a trigger for deflation is also something to watch. Investors balked after the Federal Reserve indicated it would make smaller interest rate cuts next year than expected. But on Friday, a Fed official said he was encouraged by the personal consumption expenditures report and said interest rates may continue to fall, although the central bank remains cautious.

“It was really a great moment this morning,” Kramer said. “They don't come often. But when they do, you have no choice but to pounce.”

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Disclaimer The CNBC Investing Club Charitable Trust owns shares in Nvidia and Apple.